Consider the following statements regarding confiscation under the IT Act, 2000: 1. Any computer, computer system or related device used in the commission of an offence may be liable to confiscation. 2. Confiscation automatically extinguishes all other forms of punishment. 3. Confiscation does not affect the power of courts to impose separate penalties or imprisonment. Which of the above are correct?

Confiscation provisions allow computers, systems, or devices used in committing offences to be seized. However, confiscation does not extinguish other penalties, meaning fines, imprisonment, or other statutory sanctions can also be applied. Statements 1 (devices liable for confiscation) and 3 (does not preclude other penalties) are correct; Statement 2 (confiscation extinguishes other penalties) is incorrect. Therefore, Option C is correct. This distinction is crucial in understanding cumulative penalties in cyber offences.